Correlation Between HJ ShipBuilding and Haesung DS
Can any of the company-specific risk be diversified away by investing in both HJ ShipBuilding and Haesung DS at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining HJ ShipBuilding and Haesung DS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HJ ShipBuilding Construction and Haesung DS Co, you can compare the effects of market volatilities on HJ ShipBuilding and Haesung DS and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in HJ ShipBuilding with a short position of Haesung DS. Check out your portfolio center. Please also check ongoing floating volatility patterns of HJ ShipBuilding and Haesung DS.
Diversification Opportunities for HJ ShipBuilding and Haesung DS
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between 097230 and Haesung is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding HJ ShipBuilding Construction and Haesung DS Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haesung DS and HJ ShipBuilding is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on HJ ShipBuilding Construction are associated (or correlated) with Haesung DS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haesung DS has no effect on the direction of HJ ShipBuilding i.e., HJ ShipBuilding and Haesung DS go up and down completely randomly.
Pair Corralation between HJ ShipBuilding and Haesung DS
Assuming the 90 days trading horizon HJ ShipBuilding is expected to generate 1.79 times less return on investment than Haesung DS. But when comparing it to its historical volatility, HJ ShipBuilding Construction is 1.1 times less risky than Haesung DS. It trades about 0.14 of its potential returns per unit of risk. Haesung DS Co is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 2,640,000 in Haesung DS Co on November 22, 2024 and sell it today you would earn a total of 560,000 from holding Haesung DS Co or generate 21.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HJ ShipBuilding Construction vs. Haesung DS Co
Performance |
| Timeline |
| HJ ShipBuilding Cons |
| Haesung DS |
HJ ShipBuilding and Haesung DS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HJ ShipBuilding and Haesung DS
The main advantage of trading using opposite HJ ShipBuilding and Haesung DS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HJ ShipBuilding position performs unexpectedly, Haesung DS can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Haesung DS will offset losses from the drop in Haesung DS's long position.| HJ ShipBuilding vs. Samyang Foods Co | HJ ShipBuilding vs. YeaRimDang Publishing Co | HJ ShipBuilding vs. Hankukpackage Co | HJ ShipBuilding vs. Sam Yang Foods |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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